Chapter 6 Category 11c Violation(s) of the UPCS or Local Inspection Standards
This category is used to report noncompliance when rental units, building exteriors and systems, common areas, *or* the property site in a project are not suitable for occupancy. State agencies should assess whether low-income housing tax credit properties are in safe, decent, sanitary condition and in good repair, according to either the Uniform Physical Conditions Standards1 (UPCS) established by HUD2, or local inspection standards. The standards to be used should be identified in the Qualified Allocation Plan3 (QAP).
1. State agencies are not required to use the *Real Estate Assessment Center* (REAC) protocol in using the UPCS.
2. State agencies cannot combine selected portions of the UPCS with portions of local standards; only one inspection standard can be selected and used.
Noncompliance may be identified when the agency reviews an owner’s annual certification that the buildings and units in an LIHC project were suitable for occupancy. (See Treas. Reg. §1.42-5(c)(1)(vi).) The owner must also certify that state or local authorities responsible for making inspections did not issue a violation report for any building or low-income unit in the project. If a violation notice or report was issued, the owner must attach a statement summarizing the violation report/notice (or a copy) to the annual certification submitted to the state agency. The owner must also state whether the violation was corrected.
State agencies must inspect LIHC properties to ensure that LIHC buildings and units are suitable for occupancy. 4 Under Treas. Reg. §1.42-5(C)(2)(ii)(B), on-site inspections must be made at least once every three years.
HUD’s Uniform Physical Condition Standards (UPCS)
The UPCS requires housing to be decent, safe, sanitary and in good repair. The major areas of consideration include:
1. Site: The site components such as fencing and retaining walls, grounds, lighting, mailboxes/project signs, parking lots and driveways, play areas and equipment, refuse disposal, roads, storm drainage, and walkways must be free of health and safety hazards and in good repair. The site must not be subject to material adverse conditions, such as abandoned vehicles, dangerous walks or steps, poor
1 The Uniform Physical Conditions are available at www.gpoaccess.gov. On the main page, select the “Code of Federal Regulations” option and then enter “24CFR5.703” into the search feature using the quotes (“…”). Department of Housing and Urban Development See IRC §42(m)(1)(B)(iii). See Treas. Reg. §1.42-5(d)(2) 2 3 4
Revised October 2009